India has implemented a dual Goods and Service Tax GST Consider the following statements about GST 1...........

Economic Affairs Tax System

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India has implemented a dual Goods and Service Tax (GST). Consider the following statements about GST.

1. Under the dual GST system tax is levied by both the Union and the State governments.

2. The prices of goods and services are expected to fall in the long term due to the introduction of GST.

3. The Goods and Services Tax is paid by consumers, but it is levied and remitted to the government by businesses.

Select the correct statement/s using the codes given below.

1 and 2

2 and 3

1 and 3

1, 2 and 3

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Explanation:

All of the above are correct.

Currently, fiscal powers between the Centre and the States are clearly demarcated in the Constitution with almost no overlap between the respective domains. The Centre has the powers to levy tax on the manufacture of goods (except alcoholic liquor for human consumption, opium , narcotics etc.) while the States have the powers to levy tax on sale of goods.

The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services.